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TORONTO, Nov. 29, 2021 (GLOBE NEWSWIRE) -- AGF Investments Inc. (TSX:AGF.B) announced today proposed changes to the investment objectives for AGFiQ US Market Neutral Anti-Beta CAD-Hedged ETF (Ticker: QBTL) (the “ETF”), subject to obtaining unitholder and regulatory approval.
Following an extensive review, AGF and AGF Investments LLC, as sub-advisor, believe it is in the best interests of the ETF and its unitholders to change from a passive, index tracking strategy to a rules-based, active strategy.
Currently, the ETF seeks performance results that correspond to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Thematic Market Neutral Low Beta Index (CAD-Hedged). The ETF’s proposed new investment objective seeks to provide a consistent negative beta exposure to the U.S. equity market by investing primarily in long positions in low beta U.S. equities and short positions in high beta U.S. equities on a dollar neutral basis, within sectors. There will be no changes to the ETF’s use of leverage.
“We believe these changes will improve the investor experience,” said Bill DeRoche, Chief Investment Officer and Portfolio Manager, AGF Investments LLC. “We believe an active approach to managing QBTL will provide greater flexibility to produce more consistent negative beta exposure that, when combined with U.S. equity exposure, can reduce U.S. equity market drawdown magnitude, and improve risk-adjusted returns over time.”
A special meeting of unitholders will be held virtually on or about January 20, 2022 to consider and approve the proposed change to the investment objectives of the ETF. Subject to receipt of all necessary approvals, the new investment objective is anticipated to be implemented on or about January 28, 2022. The following additional changes will be made to the ETF concurrent with the change to the investment objectives:
Investment strategies updated to align with the new investment objectives; and
Risk factors updated to reflect the change in investment objectives and investment strategies.
There are no anticipated changes to the ETF’s name, ticker symbol, fees and expenses, portfolio managers or its performance benchmark.
Additional information about the proposed investment objective and ancillary changes will be provided in the ETF’s management information circular. In advance of the special meeting, a notice-and-access document will be mailed to the ETF’s unitholders of record as at December 6, 2021. The notice-and-access document will describe the various ways in which unitholders can obtain a copy of the management information circular. The management information circular will also be available at www.sedar.com.
Further information about the AGF ETFs can be found at AGF.com.
This information is not intended to provide legal, accounting, tax, investment, financial, or other advice, and should not be relied upon for providing such advice. Commissions, management fees and expenses all may be associated with an investment in exchange-traded funds (ETFs). Please read the prospectus or relevant ETF Facts before investing. ETFs are not guaranteed, their values change frequently and past performance may not be repeated. Units of ETFs are bought and sold at market price on a stock exchange and brokerage commissions will reduce returns.
About AGF Management Limited
Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.
AGF has investment operations and client servicing teams on the ground in North America, Europe and Asia. With over $42 billion in total assets under management and fee-earning assets, AGF serves more than 700,000 investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.
Director, Corporate Communications
The Dow Jones U.S. Thematic Market Neutral Low Beta Index (CAD Hedged) is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI") and has been licensed for use. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). The AGFiQ US Market Neutral Anti-Beta CAD-Hedged ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product nor do they have any liability for any errors, omissions, or interruptions of the Dow Jones U.S. Thematic Market Neutral Low Beta Index.